Freeport LNG Expansion announced that its subsidiary, FLNG Liquefaction, has entered into definitive agreements for the debt financing of approximately $3.85 billion of capital required for the development of Freeport LNG’s first train facility (train one) at its proposed natural gas liquefaction and LNG loading facility on Quintana Island near Freeport, TX.
The train one debt financing is being provided by Japan Bank for International Cooperation (JBIC) and the following six commercial banks: The Bank of Tokyo-Mitsubishi UFJ, Sumitomo Mitsui Banking, Mizuho Bank, Sumitomo Mitsui Trust Bank, Mitsubishi UFJ Trust and Banking Corporation and ING Bank, Tokyo Branch. The portion of the loans financed by the commercial banks is insured by Nippon Export and Investment Insurance. Pursuant to their previously announced agreement, Osaka Gas and Chubu Electric Power are investing approximately $1.2 billion for the development of Train One.
“We are excited to announce our partnership with Japanese governmental institutions to support the financing needs of the Freeport LNG liquefaction facility and to become a key contributor to the long-term diversification and security of energy supplies to Japanese utilities,” said Michael S. Smith, CEO of Freeport LNG. “We look forward to commencing construction of the initial two trains of the liquefaction project in the coming weeks and beginning commercial exports in 2018.”
Freeport LNG expects to also soon announce the execution by its subsidiary, FLNG Liquefaction 2, of definitive agreements for the debt financing needs for its second train facility.